Madam, – In the article regarding upward-only commercial rent reviews (Commercial Property, June 8th), it is stated that only 19 per cent of the currently-let retail units in Wexford, 75 in total, had been refused rent reductions. The results of Retail Excellence Ireland’s Member Survey in March, which was complied from members throughout Ireland and in all retail sectors, show a very different situation. Our much larger survey of 3,600 stores showed that 68 per cent retailers had been refused a rent reduction.
The relevance of this Wexford-based survey to a debate about the wider Irish retail property market is also highly questionable, given that there are no major shopping centres in the survey area. While upward-only rents apply in all of Ireland’s retail locations, the most pronounced difficulties lie in large cities like Dublin, Cork and Limerick, where large numbers of shopping centres have been built. It is here that our members have witnessed almost complete intransigence on the part of the majority of commercial landlords to the dramatically changed retail environment.
One would also have to question why, if only 19 per cent of retailers were refused reductions in Wexford, so many landlords, developers and estate agents are campaigning so hard to keep the status quo? If they have reduced rent and adapted to the new retail climate, the majority of landlords should presumably welcome the abolition of upward-only rents as it will mean landlords avoiding change will now have to share their part of the burden.
The truth is that in the real world of Irish retail, the continuance of upward-only rent reviews is one of the main factors behind continued store closure and record job losses. The Government is to be congratulated for taking the bull by the horns and initiating reforming legislation in the short term to do away with these anachronistic regulations. – Yours, etc,